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Towards a convergence of Thought between Finance and Program
Managers
ICPAK Annual Non-Profit Organizations Financial Management Conference
Sarova Whitesands Beach Resort & SPA
By: Richard O. Radiro (PhD)
26th October 2016
Background:
 The global development operating environment has
been and continues to exhibit instability due to a
volatile global economic environment
 Infrastructure deficit is a major setback to economic
development goals
 Other major challenges such as climate change
effects, stifling of democratic space, gender disparity,
high levels of corruption, disproportionate skills
mismatch and skills deficiency in the labour market
and civil strife continue to impede socio-economic
development, particularly in developing nations
Background Cont…
 Despite this grim picture, the audacity of hope and
the resilience of the African people in general, and
Kenyan population in particular, presents citizens and
development
practitioners
with
tremendous
opportunity to surmount the challenges and spur
economic development
 Africa is the new frontier with immense natural
resources, raw materials and human capital
 Indeed, Kenya is a regional hub in business,
entrepreneurship, tourism, education, technology,
innovations, sports and culture among others
Towards a convergence of Thought between Finance and
Program Managers
Current Dichotomy:
 Programme Managers focus on the following: - Log frame
- Objectives
- Indicators
- Evidence
 Finance Managers focus on the following
- Activities
- Budget
Towards a convergence of Thought between Finance
and Program Managers
 The tasks of an NGO program officer cannot be
directly compared to those of a Wall Street banker
 Traditional finance and development will continue to
remain distinct; however, the agenda of the two
have increasingly moved towards convergence
 Impact investing; the practice of deploying profitseeking capital to achieve social good, as well as
shared value; a management strategy that equates
business value with sustainability practices; have
both become more mainstream in the worlds of
traditional finance practice
Towards a convergence of Thought between Finance
and Program Managers
 The principles of finance are seemingly becoming
more and more intertwined with the way
development is pursued
 Pundits argue that there is need to address the
limitations of financial fluency among development
workers on the one hand, and development
eloquence among finance professionals on the other
hand
 The traditional financial industry and its array of
actors such as banks, institutional investors and
venture capitalists have been factoring social impact
projects more into their menu of investment options
Towards a convergence of Thought between
Finance and Program Managers
 Can the Theory of Change and Return on
Investment be enveloped in the same
conversation by finance and program people?
 Finance and Development experts must now
become bilingual in development and finance
 There is an increasing quest by development
investors in the intersection of finance and
development
Towards a convergence of Thought between Finance
and Program Managers
Financial fluency; speaking the language of business
 Value creating project manager
 The CEO and the CFO should focus on key
parameters to drive business (strategic thinking)
 The two should be on the same wavelength and
speak the same financial and development language
 Influence effectively and persuasively with the right
financial and development models, framework and
jargon (simple language but not mundane)
Some strategic focus areas necessary for driving an
equitable and sustainable development agenda:
 Focus on 2015 - 2030 Sustainable Development Goals:
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition,
and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all
ages
4. Ensure inclusive and equitable quality education and
promote life-long learning opportunities for all
5. Achieve gender equality and empower all women and
girls
Some strategic focus areas necessary for driving an
equitable and sustainable development agenda:
 Focus on 2015 - 2030 Sustainable Development Goals:
1. Ensure availability and sustainable management of water
and sanitation for all
2. Ensure access to affordable, reliable, sustainable and
modern energy for all
3. Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent work
for all
4. Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
13. Take urgent action to combat climate change and its
impacts (in line with UN framework convention on Climate
Change)
When convergence of Though between Finance
and Program is achieved, we can transform and
dichotomize From this…..
To these…..
Conclusion:
Finance and Program Managers should seek to
understand:
- The Project Cycle Management
- The rationale for development investment
- Development strategy and approach
- Resources required to achieve development goals
- The process needed to achieve value for money
- Monitoring and evaluation, including financial,
operation and program audit
Thank You